Girgit, India's first color-changing products store, has taken the market by storm with its innovative and eye-catching products. The company was founded by Benoy Shah and Pooja Bajaj Shah, who saw a gap in the market for products that change color with temperature variations. Before Girgit, Pooja worked as a teacher and coordinator in a school in Mumbai. But now, she is at the forefront of a rapidly growing business.
The company manufactures products for both kids and adults, with a range of footwear, clothes, and accessories that are designed to change color as the temperature changes. In just one year of operation, they sold 3000 products and had 1800 happy customers. This success led them to expand into the adult market, which has proved just as popular as their children's range. Their kid's footwear sells for ₹2000 and adult footwear for ₹3000.
When pitching to investors on Shark Tank India Season 2, Girgit's founders asked for 20 lakhs for 10% equity, valuing the company at 2 crores. This pitch attracted the attention of Namitha, who gave an offer of 20 lakhs for 20% equity at a valuation of 1 crore. In response, Girgit's founders gave a counteroffer of 20 lacs for 15% equity at a valuation of 1.3 crores. After some negotiation, the final deal was closed with Namitha at 20 lakhs for 20% equity at a valuation of 1 crore.
Girgit's success is due to its unique selling proposition of using cheap raw materials while maintaining a high gross margin. The company's lifetime sales are 58 lakhs, with a gross margin of 79%. On August 22, sales were 8.5 lakhs, while in July they were 7.5 lakhs, and in June, they were 5 lakhs. The majority of sales, 65%, come from WhatsApp, with 20% from exhibitions, and they spend ₹30000 on marketing through Instagram.
In addition to their impressive sales figures, Girgit has identified potential cross-selling opportunities, such as backpacks, stickers, slogans, and T-shirts. This approach demonstrates the founders' vision and ambition to expand the brand beyond its current range of products.
The success of Girgit also reflects a broader trend in the Indian market, where consumers are increasingly looking for innovative and unique products that reflect their personalities and preferences. The company's color-changing products have tapped into this trend, appealing to both children and adults who want to stand out from the crowd.
Overall, Girgit is a great example of how innovative ideas and entrepreneurial spirit can lead to success in a competitive market. The founders' vision, combined with their understanding of the market and consumer needs, has helped them create a brand that is rapidly becoming a household name in India. With the support of their investors, the future looks bright for Girgit, and we can expect to see more exciting and innovative products from them in the future.
ALIPPO LEARNINGS:
Here are some learnings that can help businesses grow:
- Identify a unique selling proposition (USP): A unique selling proposition can help differentiate your brand from the competition. In Girgit's case, their USP was using cheap raw materials while maintaining a high gross margin. It is important to identify what sets your brand apart from others in the market.
- Keep an eye on market trends: Understanding market trends and consumer preferences can help businesses create products that meet the needs of their target audience. Girgit tapped into the trend of consumers looking for innovative and unique products that reflect their personalities and preferences.
- Focus on cross-selling opportunities: Identifying potential cross-selling opportunities can help expand your brand beyond its current range of products. Girgit's founders identified opportunities such as backpacks, stickers, slogans, and T-shirts to expand their product range.
- Use social media for marketing: Social media can be a cost-effective way to reach a large audience. Girgit spent ₹30000 on marketing through Instagram and used WhatsApp as their primary sales channel.
- Be open to negotiations: Negotiating with investors or partners can help achieve a mutually beneficial agreement that can help your business grow. Girgit's founders negotiated with Namitha on Shark Tank India Season 2 to arrive at a deal that worked for both parties.
